Profit Booking Likely To Happen - Market commentary

The Global Markets give out mixed cues this morning. The Standard & Poors 500 Index is trading at the lowest  valuation compared with junk bonds in two years, a sign the stock-market rally will continue, if two decades of history are any guide. European stocks rose for a fourth straight week as European leaders agreed on a Greek rescue proposal, putting the International Monetary Fund on standby. This morning most Asian stocks rose as  gains among mining companies on higher commodity prices offset declines by Japanese shares after rights to dividends expired. On the commodities front Crude oil climbed from a two-week low on speculation demand will increase as the global economy recovers from its worst recession since World War II. Gold consumption in China may double within the next 10 years, boosting prices as supplies fail to keep pace with booming demand from investors and the jewellery industry, the World Gold Council said. Copper in Shanghai rose for a third day as domestic stockpiles fell the most since December, boosting investor confidence that demand is increasing. The Indian markets after starting in red this morning saw some buying interest to trade flat in green. Most of the sectoral and the broader indices trade in green. Buying interest is seen in Consumer Durables, Metal and Auto indices. The IT index is the only exception that trades in red this morning declining 1.67 percentage points. Market breadth is positive with 1,307 advances against 1,071 declines. The Sensex trades in green at 17,683.02 gaining 38.26 points or 0.22 percentage points. Nifty trades at 5296.20 gaining 14.20 points or 0.27 percentage points. The markets are likely to remain volatile and are likely to take cues from their global peers
Source: DALAL STREET INVESTMENT JOURNAL
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